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Local Government Act 1972

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68 Transitional agreements as to property and finance.E+W

(1)Any public bodies affected by the alteration, abolition or constitution of any area by an order under this Part of this Act may from time to time make agreements with respect to any property, income, rights, liabilities and expenses (so far as affected by the alteration, abolition or constitution) of, and any financial relations between, the parties to the agreement.

(2)The agreement may provide—

(a)for the transfer or retention of any property, rights and liabilities, with or without conditions, and for the joint use of any property;

(b)for the making of payments by either party to the agreement in respect of property, rights and liabilities so transferred or retained, or of such joint use, and in respect of the remuneration or compensation payable to any person; and

(c)for the making of any such payment either by way of a capital sum or of a terminable annuity.

(3)In default of agreement as to any matter, the matter shall be referred to the arbitration of a single arbitrator agreed on by the parties, or in default of agreement appointed by the Secretary of State, and the award of the arbitrator may provide for any matter for which an agreement under this section might have provided.

(4)Any sum required to be paid by a public body in pursuance of an agreement or award under this section may be paid out of such fund or rate as may be specified in the agreement or award, or if no fund or rate was specified, either out of the fund or rate from which the general expenses of the public body are defrayed, or out of such fund or rate as the public body may direct.

(5)For the purposes of paying any capital sum required to be paid by a public body in pursuance of any such agreement or award—

(a)a local authority may borrow without the approval of the Secretary of State, but so that the sum borrowed shall be repaid within such period as the authority with the consent of the Secretary of State may determine;

(b)any other public body having power under any enactment or any instrument made under any Act to borrow may borrow under that enactment or instrument; and

(c)a public body having no power under any enactment or any such instrument to borrow may be empowered by an order made by the Secretary of State to borrow in such manner and in accordance with such conditions as may be provided by the order.

F1(6)(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)Any agreement or award under this section which relates to the profits of local taxation licences shall, so far as it so relates, be carried out in accordance with regulations made by the Secretary of State.

(9)Subsection (8) above shall apply to—

(a)an adjustment made under section 151 of the 1933 Act, whether as originally enacted or as applied by any other enactment or any instrument made under any Act; and

(b)an adjustment made under section 32 or 62 of the M1Local Government Act 1888, whether as originally enacted or as so applied, and consequent on an alteration of areas effected after 31st March 1930;

as it applies in relation to an agreement or award under this section.

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